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Town Sports International Holdings, Inc. Reports Second Quarter 2018 Results

Town Sports International Holdings, Inc. ("TSI") (NASDAQ:CLUB) today
reported results for the second quarter of 2018.

TSI's earnings for the second quarter of 2018 are summarized below. To
become fully apprised of our results, shareholders are urged to read our
Form 10-Q for the quarterly period ended June 30, 2018 posted at https://www.townsportsinternational.com.The limited information that follows in this press release is not
adequate for making informed investment decisions. The unaudited
condensed consolidated Statements of Operations are included below.

Dollar amounts in this release are in thousands, except for share and
per share amounts. Amounts are unaudited.

Condensed Consolidated Statements of Operations

Second Quarter

2018

2017

Revenues:

Club operations

$

111,047

$

98,392

Fees and other

1,282

1,601

112,329

99,993

Operating Expenses:

Payroll and related

42,396

37,058

Club operating

50,131

44,032

General and administrative

6,381

5,369

Depreciation and amortization

9,640

10,016

108,548

96,475

Operating income

3,781

3,518

Interest expense

3,338

3,155

Interest income

(45

)

—

Equity in earnings of investee

(78

)

(48

)

Income before provision for corporate income taxes

566

411

(Benefit) provision for corporate income taxes

(35

)

821

Net income (loss)

$

601

$

(410

)

Earnings (loss) per share:

Basic

$

0.02

$

(0.02

)

Diluted

$

0.02

$

(0.02

)

Weighted average number of shares used in calculating earnings
(loss) per share:

On January 1, 2018, the Company adopted FASB Accounting Standards
Codification Topic 606 and all the related amendments ("ASC 606")
which requires the Company to defer costs related to obtaining
members and expense those costs over the estimated membership life.
Under previous guidance, these membership costs were expensed at the
time of the respective sale.

(2)

EBITDA and Adjusted EBITDA for the second quarters of 2018 and 2017
include costs related to acquisitions of $609 and $25, respectively.

Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA

EBITDA consists of net income (loss) plus interest expense (net of
interest income), provision (benefit) for corporate income taxes, and
depreciation and amortization. Adjusted EBITDA is TSI's EBITDA excluding
certain items, such as any fixed asset or goodwill impairments, gain
(loss) on extinguishment of debt, incremental expense related to the
adoption of ASC 606, and net costs related to closing clubs and other
cost-savings initiatives, net of landlord recovery. EBITDA is not a
measure of liquidity or financial performance presented in accordance
with GAAP. EBITDA, as we define it, may not be identical to similarly
titled measures used by some other companies.

EBITDA has material limitations as an analytical tool and should not be
considered in isolation or as a substitute for net income (loss),
operating income (loss), cash flows from operating activities or other
cash flow data prepared in accordance with GAAP. The items excluded from
EBITDA, but included in the calculation of reported net income and
operating income, are significant and must be considered in performing a
comprehensive assessment of our performance.

Investors or prospective investors in TSI regularly request EBITDA as a
supplemental analytical measure to, and in conjunction with, our GAAP
financial data. We understand that these investors use EBITDA, among
other things, to assess our ability to service our existing debt and to
incur debt in the future, to evaluate our executive compensation
programs, to assess our ability to fund our capital expenditure program,
and to gain insight into the manner in which TSI's management and board
of directors analyze our performance. We believe that investors find the
inclusion of EBITDA in our press releases to be useful and helpful to
them.

Our management and board of directors also use EBITDA as a supplemental
measure to our GAAP financial data for purposes broadly similar to those
used by investors.

Adjusted EBITDA has similar uses and limitations as EBITDA. We have
excluded additional items in the calculation of Adjusted EBITDA because
management believes that this metric is useful in making period to
period comparisons of our performance. We do not, and investors should
not, place undue reliance on EBITDA or Adjusted EBITDA as a measure of
our performance.

Forward-Looking Statements

This release may contain "forward-looking" statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements regarding future financial results and
performance, potential club closures, results of cost-savings
initiatives, and other statements that are predictive in nature or
depend upon or refer to events or conditions, or that include words such
as "may," "should," or the negative version of these words or other
comparable words. Forward-looking statements speak only as of the date
when made, and TSI undertakes no obligation to update these statements
in light of subsequent events or developments. Actual results may differ
materially from anticipated results or outcomes discussed in any
forward-looking statement.

About Town Sports International Holdings, Inc.

Town Sports International Holdings, Inc. is a diversified holding
company with subsidiaries engaged in a number of business and investment
activities. The Company's largest operating subsidiary has been involved
in the fitness industry since 1973 and has grown to become one of the
largest owners and operators of fitness clubs in the Northeast region of
the United States. TSI's corporate structure provides flexibility to
make investments across a broad spectrum of industries in order to
create long-term value for shareholders.

Until further notice, TSI will not be hosting conference calls to
discuss quarterly results. TSI intends to continue to issue press
releases reporting quarterly earnings.